What Is Average Manufacturer Price (AMP)?

The Average Manufacturer Price (AMP) is the average price paid by wholesalers to manufacturers for drugs distributed to retail pharmacies. It was created to calculate Medicaid rebates. The AMP is statutorily defined and its calculation is based on actual sales transactions. Drug manufacturers must report AMP data for all Medicaid-covered drugs to the Centers for Medicare & Medicaid Services (CMS) quarterly as a requirement of the Medicaid drug rebate program. Most state Medicaid agencies do not have access to AMP data, which is proprietary.

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